SP Group to issue Rs 25,500 crore bonds against Tata Sons stake

SP Group plans to issue Rs 25,500 crore in zero-coupon unlisted NCDs through Eqvizen Investment, with Cyrus Investments pledging Tata Sons shares as collateral. The bonds carry an effective yield of 18.95% to refinance existing debt and include a deleveraging covenant requiring at least Rs 13,500 crore repayment within 24 months. Bond terms mandate either a Tata Sons IPO or a settlement between SP Group and Tata Sons within 18 months, coming amid RBI's NBFC-UL framework that has classified Tata Sons — with assets above Rs 1.75 lakh crore — as an upper-layer NBFC requiring mandatory listing.